Secured card help

Secured card help

A relative of mine has terrible credit along with 10 collections on their reports. No way they will ever be able to pay them back. They have been on her reports for 4-5 years now. They are going to try and get a secured card through capital one. If they only get one for 300$ limit and have to pay for things that are over 300$ can they "force" payments from the bank to the secured card?

Re: Secured card help

Lambo23 wrote:A relative of mine has terrible credit along with 10 collections on their reports. No way they will ever be able to pay them back. They have been on her reports for 4-5 years now. They are going to try and get a secured card through capital one. If they only get one for 300$ limit and have to pay for things that are over 300$ can they "force" payments from the bank to the secured card?

If you go overlimit, there can be a fee and they can jack up your interest rate. Why would they ever need to go over $300?

Re: Secured card help

Lambo23 wrote:A relative of mine has terrible credit along with 10 collections on their reports. No way they will ever be able to pay them back. They have been on her reports for 4-5 years now. They are going to try and get a secured card through capital one. If they only get one for 300$ limit and have to pay for things that are over 300$ can they "force" payments from the bank to the secured card?

If the purchase is for an amount above the line of credit, the charge will be declined. In such case the amount of the purchase that exceeds the available credit, would have to be made up through another form of payment.

Also, since you are already talking about maxing-out the card, before you have even received it, you should remember that doing so will cause the credit score to drop even further than it already is.

Your relative needs to re-evaluate the need to apply for any credit, secured or not - as the options are already severely limited - burning the last available bridge is something that has to be very carefully considered.

Re: Secured card help

Obviously no one understood what I meant. This person has bills to pay. They would like to use the card to pay the bills to build their credit. For now say they have only 100$ for a deposit and that gives them a $300 limit.If the limit is $300 and they push another 300$ to the card from the bank bill pay system, they now have a $300 credit along with a $300 limit. Would they be able to use it to make a purchase for say $500-600?Similar to a normal credit card in which you need to spend more than your limit on a purchase. You can push money over from the bank and have a credit plus your credit line. Not sure if that would work for a secured card as well. That is my question..

Re: Secured card help

Also, since you are already talking about maxing-out the card, before you have even received it, you should remember that doing so will cause the credit score to drop even further than it already is.

Your relative needs to re-evaluate the need to apply for any credit, secured or not - as the options are already severely limited - burning the last available bridge is something that has to be very carefully considered.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.